Taiex soars to end above 45,000 points on U.S.-Iran peace deal

Taipei, June 15 (CNA) Shares in Taiwan surged more than 1,200 points and closed above the 45,000-point mark Monday on an announcement by the United States and Iran that they have reached a peace deal slated to be signed Friday, dealers said.

The Taiex, the Taiwan Stock Exchange's benchmark index, ended up 1,227.95 points, or 2.78 percent, at 45,396.99 after moving between 44,447.87 and 45,483.63. Turnover totaled NT$1.06 trillion (US$33.46 billion).

"With the U.S.-Iran deal, crude oil prices fell and could fall further, easing inflation concerns worldwide," Concord Securities analyst Kerry Huang said.

Brent crude, the global benchmark, fell 4.3 percent at one point Monday with West Texas Intermediate down 4.9 percent.

"So, regional equity markets moved sharply higher today," Huang said, "Taiwan cannot be isolated, with buying seen almost across the board, led by the electronics sector during the current AI boom."

Contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC), which accounts for over 40 percent of the local market, rose 2.81 percent to close at NT$2,375.00, contributing about 520 points to the Taiex's rise and sending the electronics index up 2.97 percent.

Smartphone IC designer MediaTek Inc. rose 6.94 percent to end at NT$4,470.00, and United Microelectronics Corp., a smaller contract chipmaker, gained 5.99 percent to close at NT$141.50.

"Buying also rotated to passive electronics component makers, adding momentum to the tech sector," Huang said, citing Yageo Corp. -- the world's third largest multi-layer ceramic capacitor -- which jumped 10 percent to close at NT$940.00. Kaimei Electronic Corp., another capacitor supplier, also surged 10 percent to end at NT$189.50.

iPhone assembler and AI server maker Hon Hai Precision Industry Co. gained 2.69 percent to close at NT$267.50, while Quanta Computer Inc., another AI server supplier, fell 0.54 percent to end at NT$370.00.

Despite falling crude prices, select petrochemical stocks still attracted strong interest as Huang said investors had hopes about their efforts in electronics material production to tap the AI era.

With the petrochemical index up 3.81 percent, Nan Ya Plastics Corp. soared 10 percent to close at NT$117.00, while its affiliates Formosa Plastics Corp. and Formosa Chemicals & Fibre Corp. rose 4.42 percent and 5.74 percent, respectively, to end at NT$47.25 and NT$51.60.

Due to the government's investments in electricity grid networks nationwide, Shihlin Electric & Engineering Corp. added 2.50 percent to close at NT$225.50, and Teco Electric & Machinery Co. ended up 3.10 percent at NT$73.20.

The financial sector was boosted by expectations of higher cash dividend payouts, up 2.76 percent, Huang said.

Fubon Financial Holding Co. gained 4.51 percent to close at NT$127.50, and Cathay Financial Holding Co. rose 3.48 percent to end at NT$104.00.

"Investors should pay close attention to what the U.S. Federal Reserve will say later this week for more clues about its interest rate policy," Huang said

According to the Taiwan Stock Exchange, foreign institutional investors bought a net NT$46.53 billion of shares on the main board Monday.